Tata to become entry level brand-Fiat premium

This is a discussion on Tata to become entry level brand-Fiat premium within The Indian Car Scene, part of the BHP India category; Originally Posted by deepakhon
The news is that Fiat is supposed to take the "high end" portion of Tata-Fiat Partnership ...

The news is that Fiat is supposed to take the "high end" portion of Tata-Fiat Partnership whereas Tata will take up the entry level portion.

Very well put. In fact I suspect that when they say entry level and premium positioning what they simply mean is that Tatas will keep the VFM tag because of their ability to manufacture at lower price points. Comparatively the Fiats will be the higher priced one.

For the higher prices Fiat will bring in its
* fabulous engines.
* reputed models like the Punto and Linea.
* they may also give you extra accessories which you may not get in a Tata immediately. these could be ABS, EBD, airbags (driver/curtain) etc.

Could be a sound strategy provided Fiat puts in a much much higher advertising budget. That may even mean hiring some top end brand management company and slowly build up a brand.

Tata Safari will remain their only product as Fiat has no proper medium sized SUV in its stable.

The Safari may be badged Fiat in some markets. We do know that the new Telcoline will be assembled in Fiat's factory in Cordoba, Argentina and sold as a Fiat pickup with the 2.2 Dicor engine initially and later with the revised 3.0 Dicor - its only logical that the new Safari (as and when it comes out) will be badged Fiat and sold in those markets too.

The Safari may be badged Fiat in some markets. We do know that the new Telcoline will be assembled in Fiat's factory in Cordoba, Argentina and sold as a Fiat pickup with the 2.2 Dicor engine initially and later with the revised 3.0 Dicor - its only logical that the new Safari (as and when it comes out) will be badged Fiat and sold in those markets too.

Maybe in those markets but not India,i think in those markets Fiat will have a better brand image than Tata.Fiat does reasonably well in South America.

Great analysis, Deepak... couldnt agree more... the agreement just means Fiat will do low volumes in terms of cars and possibly huge numbers on their engines (piggybacking on the sales of entry to mid-level Tata offerings).

IMHO, Fiat is not going to get to a position of strength in car sales anywhere in the near-term, though with A** sorted out from the ground up and a total image makeover, they may be able to get some good numbers on their future offerings (Punto and Linea).

It may be too early to call the Stile a failure (there's already some talk about an upcoming 16 valve 1.1 offering), but with even existing Palio users displeased with it, the picture looks rather bleak for it.

With this news, I suspect Grande Punto will be in the SRV territory and Linea in the Octavio/Civiv territory in terms of pricing.

I am inclined to think it would not be in SRV territory. The reasons being:
1. The arrival of Skoda Fabia. Fiat definitely does not enjoy the same brand name as Skoda in India at present. Punto will definitely have to undercut the Fabia for it to do any serious sales.
2. They are producing all the requisite engines locally (1.4 petrol and 1.3 JTD).
3. They can tweak the present 1.6 engine for a high end proposition. Or they have Cherry to whom they have licensed the production of 1.6 and 1.8 lit engines. China is also equally cheap.
4. They are planning on localizing quite a lot.
5. I am not too sure about this one, but I read that they are planning for excise duty cuts and for that, they are reducing the length of Punto by 30mm.

The Linea can not be in the Octi/Civic territory because of the following:
1. 1.6 and 1.8 lit engines will come from China.
2. They can even have the 1.4 lit engine which will be India built.
3. 1.3 lit JTD will be India built.
4. Most importantly, there are many components which are shared with Punto.

With all these advantages, if Fiat manage to put Punto into SRV territory and Linea into Octi/Civic territory, then it is a very serious error and their last innings in India will definitely fail.

Let them keep all the rebadging outside and please give us TATA here.
Many of us hate some four letter words which starts with F! And they will be happy to have a T on their cars.

Afterall, I think this is all going to be done after some good research and market study. It will only be done according to the way the market demands I think. And right now, does it really ask for something like this??

I have strange feeling that by doing this (premium segment to Fiat and VFM market with Tata), Tata's would want to crush Suzuki's attempt (read as Maruti SX4 diesel) advent into Indian arena. FIAT still owns the JTD diesel engine patent and can always block Suzuki from using further for all given reasons.

I have one question here..
does this mean Tata will stop designing and developing better engines and cars of its own? Will Tata Motors as an individual company not exist anymore (in passenger cars tat is)? What would be the difference between companies like Maruti and TaMo then (Indian manufacturers but with no Indian technology)?

I have one question here..
does this mean Tata will stop designing and developing better engines and cars of its own? Will Tata Motors as an individual company not exist anymore (in passenger cars tat is)? What would be the difference between companies like Maruti and TaMo then (Indian manufacturers but with no Indian technology)?

probably i think Tata will have most engines from Fiat or Tata will co-develop engines with support from Fiat,nothing wrong with it as to be competitive they have to get the latest technology fast,especially petrols where they are not that good.

We''ll have affordable , and high quality Tata cars, and then some competent , but overpriced fiats, because Fiat thinks too highly of itself in comparison to Tata.
Oh well, i don't mind , especially if it means tata gets hold on fiat's diesels!